Core Points - Dongli Machinery announced plans to use remaining funds from its initial public offering to increase capital for its wholly-owned subsidiary Hebei Anoda Automotive Shock Absorber Manufacturing Co., Ltd. for a new project [1] - The project involves an investment of 170 million RMB, covering a land area of 42 acres and a total construction area of 30,658.29 square meters [1] Company Actions - The company will hold its fourth board meeting and supervisory board meeting on July 11 and July 31, 2025, respectively, to approve the capital increase and investment project [1] - A formal investment agreement for the intelligent manufacturing project of suspension shock absorbers has been signed with the Hebei Qingyuan Economic Development Zone Management Committee [1]

Group 1 - The company held its 12th meeting of the 4th Supervisory Board on July 11, 2025, with all legal procedures followed for the meeting [1] - The Supervisory Board approved the proposal to amend the company's articles of association and to handle business registration changes, aiming to enhance operational standards and governance structure [1][2] - The proposal to increase capital by 50 million yuan to its wholly-owned subsidiary, Hebei Anoda Automotive Shock Absorber Manufacturing Co., Ltd., for the construction of an intelligent manufacturing project for automotive suspension shock absorbers was approved [2][3] Group 2 - The total investment for the intelligent manufacturing project is estimated at 170 million yuan, with approximately 14.15 million yuan sourced from the remaining funds raised from the initial public offering [2][3] - The Supervisory Board approved the adjustment of the grant price for the 2024 restricted stock incentive plan, confirming compliance with relevant regulations [3][4] - The first vesting condition of the 2024 restricted stock incentive plan was deemed fulfilled, allowing the company to proceed with the vesting process for eligible participants [4][5] Group 3 - The Supervisory Board agreed to void a portion of the restricted stocks that had been granted but not yet vested, ensuring no harm to shareholders' interests [5]

Core Viewpoint - The company plans to invest approximately 17 million yuan in the new intelligent manufacturing project for automotive suspension dampers, utilizing 14.15 million yuan of remaining over-raised funds and the rest from self-raised funds, with a construction period of 18 months [1][2][6]. Fundraising Overview - The company raised a total of 395.47 million yuan from its initial public offering, with a net amount of 395.47 million yuan after deducting related expenses [2][5]. - The remaining over-raised funds amount to 95.47 million yuan, of which 28 million yuan has been used to permanently supplement working capital [5][6]. Project Details - The new project, named the Hebei Anoda Automotive Suspension Damper Intelligent Manufacturing Project, will involve the purchase of over 150 mechanical processing equipment and several automated production lines [6][9]. - The project aims to enhance the company's product offerings and support its sustainable development [6][9]. Market Analysis - The global shock absorber market is projected to exceed 13.09 billion USD in sales by 2024, with a compound annual growth rate (CAGR) of 7.87% in China's automotive shock absorber market from 2021 to 2023 [7][8]. - The company aims to address the growing demand for high-performance dampers, particularly in the off-road vehicle segment, where the modification rate exceeds 18% [8][9]. Economic Benefits - Upon completion, the project is expected to generate annual revenue of 40 million yuan and a net profit of 4 million yuan [10]. Risk Management - The company has identified potential market risks and plans to implement measures such as establishing a dynamic tracking mechanism for market demand and enhancing its marketing network [10][11]. - Management risks will be mitigated through improved organizational structure and talent acquisition [11]. Regulatory Compliance - The project requires approval from the shareholders' meeting and will adhere to relevant regulations regarding the use of raised funds [12][14].